Your Daily Energy Report for October 4, 2024
Posted on 2024-10-04
Crude Oil
Crude Oil futures for November settled up $.67 or .909% at $74.38. Oil prices climbed for the fourth consecutive day on Friday amid anticipation of potential military action by Israel targeting Iranian energy installations, positioning crude benchmarks for their most significant weekly gains since the OPEC+ alliance began reducing production two years ago. Both oil contracts surged more than 5% on Thursday following remarks by U.S. President Joe Biden confirming ongoing discussions with Israel regarding potential support for strikes on Iranian oil facilities. "We're in talks about that," Biden stated on Thursday, triggering an immediate rally in oil futures. Additionally, Iran's Supreme Leader Ayatollah Ali Khamenei made his first public appearance since his country's missile strike on Israel, advocating for intensified anti-Israel efforts. Concerns about supply disruptions were partly alleviated by developments in Libya, where authorities announced the reopening of all oilfields and export terminals after resolving a leadership dispute over the central bank.
Natural Gas
Natural Gas futures for November settled down -$.032 or -1.109% at $2.854. Natural gas prices dropped on Friday, falling from a peak not seen in three months, driven by abundant supply. According to the EIA, utilities stored 55 billion cubic feet of gas by the week ending September 27, slightly below the anticipated 57 bcf by analysts and notably less than the 87 bcf stored during the same period last year. This brought total US gas reserves to 3,547 Bcf, reducing the surplus over the past five years to 5.7%. Despite recent price declines, the prospect of diminished supplies as winter approaches could potentially lead to a price rebound, particularly with a considerable slowdown in drilling activities observed this year.